Combined Annual Report on EL 9979, EL 24607, EL 26185, SEL 26451, SEL 26452, EL 26584, EL 26585, EL 26586 and EL 26589 Wonarah Phosphate Project Annual Report to 8 January 2011

Abstract

The significant events of the reporting year were the completion of a full feasibility study into mining at the Arruwurra deposit on SEL 26452 and the conversion of the part of SEL 26452 containing the majority of the JORC-compliant resources to ML status. The current JORC-compliant resource for Wonarah is: At 0 percent P2O5 cut-off Indicated 536Mt at 12.8 percent; Inferred 722Mt at 11 percent; Combined 1258Mt at 12 percent. At 15 percent P2O5 cut-off Indicated 197Mt at 21.6 percent; Inferred 207Mt at 20 percent; Combined 404Mt at 21 percent. Evaluation of the more distal part of the combined tenements area for economic phosphate mineralisation took place in two drilling campaigns conducted between July and November. A total of 100 reverse circulation percussion holes for 4,347m were drilled across five tenements with 1462 samples, including standards, blanks and duplicates, submitted for laboratory analysis. Results indicate that there is potential for shallow phosphate resource in the north-west part of the combined tenements area. A couple of programs of reconnaissance soil sampling took place as well as a ground magnetic survey. These programs were aimed at testing some of the magnetic and gravity anomalies that may be sourced within the basement underlying the Georgina Basin sediments.